Statewide median home price set another record high in April, hitting $602,920 and surpassing the previous high of $602,760

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A real estate sign indicates a weekend open house at the Avenida Espana property for sale in San Jose, Calif., on Tuesday, Dec. 8, 2015. The 4 bedroom, 2 bath home is 1,457 sq.ft. and lists for $649,950. (LiPo Ching/Bay Area News Group)

California home sales were lackluster in April as soft buyer demand continues to challenge the market, according to the California Association of Realtors. Despite the slow start to the spring homebuying season, Realtor officials are optimistic buyer interest will pick up as inventory increases and interest rates remain low.

C.A.R. reports closed escrow sales of existing, single-family detached homes in California totaled 396,760 units in April, down 0.1 percent from 397,210 in March and down 4.8 percent from home sales of 416,750 units in April 2018. Sales remained below the 400,000 level for the ninth consecutive month and have fallen on a year-over-year basis for a full year.

“Weak buyer demand, largely prompted by elevated home prices, is playing a role in the softening housing market,” said C.A.R. president Jared Martin. “However, with low interest rates, cooling competition and an increase in homes to choose from, buyers can take advantage of a more balanced housing market.”

Even as home sales stumbled, the statewide median home price set another record high in April, hitting $602,920 and surpassing the previous high of $602,760 set last summer. April’s price was up 6.5 percent from $565,880 in March and up 3.2 percent from a revised $584,460 in April last year.

“While we started off the spring homebuying season on a down note, home sales in the upcoming months may fare better than the top-level numbers suggest,” said C.A.R. senior vice president and chief economist Leslie Appleton-Young. “The year-over-year sales decrease was the smallest in nine months, and pending home sales increased for the second straight month after declining for more than two years. While we don’t expect a sharp sales rebound, we also don’t expect an acceleration in declines.”

In the San Francisco Bay Area, sales were down one percent from April 2018. Alameda, Marin, San Francisco and San Mateo counties posted annual sales increases while Contra Costa, Santa Clara, Solano and Sonoma saw declines. Sales in Napa County were flat compared to a year ago.

Meanwhile, the median home price increased from a year ago in all regions except the San Francisco Bay Area. Of the entire nine-county region, only Napa County posted an increase in April of 3.3 percent, while San Mateo, Santa Clara and Sonoma recorded the largest annual price declines of 9.5 percent, 7.7 percent and 5.8 percent, respectively.

April sales in Santa Clara County were down 8.4 percent from a year ago, but home sales were up 12.1 percent from March 2019. The April median sales price for Santa Clara County home was $1,315,000, 7.7 percent below the April 2018 median of $1,425,000, and 1.2 percent above the March 2019 median of $1,300,000. Santa Clara County’s Unsold Inventory Index was 2.4 months in April, up from 2.3 months in March and up from 1.6 months in April 2018.

Alan Barbic, president of the Silicon Valley Association of Realtors, points to the month to month sales increase in Silicon Valley. “April home sales in San Mateo County and Santa Clara County were up from March by 22.5 percent and 12.1 percent, respectively. That shows demand for homes hasn’t waned. Inventory is improving, interest rates remain low, and the economy is healthy. These are advantages for buyers,” said Barbic. “Home price growth has moderated and if a home is priced according to current conditions, it is likely to sell quickly.”

The 30-year, fixed-mortgage interest rate averaged 4.14 percent in April, down from 4.47 percent in April 2018, according to Freddie Mac. The five-year, adjustable mortgage interest rate increased in April to an average of 3.75 percent from 3.66 in April 2018.

Rose Meily is the public affairs and communications director for Silicon Valley Association of REALTORS in Cupertino (www.silvar.org). Contact her at rmeily@silvar.org.